Craigard Buys in Yeovil and Cirencester
Craigard has made a ‘below the radar’ acquisition in Yeovil - a sale and lease back closed with a local defence engineering company in a deal worth £1.4million.
Rent payable is £140k per annum and the lease is for ten years with a rent review at year five. Investment yield after purchase costs is 9.45%. The factory extends to just over 22000 sq.ft and was built in the late 1980’s. Located on the Lynx Trading Estate, it is one of the best of the industrial locations in the town. The building has prominent frontage to a main road, which has many trade counter/retail outlets such as Morrison’s and Screwfix.
Commenting on the acquisition, Managing Partner of Craigard Investments, Paul Foster said: “This is a steady little investment opportunity bought at a sensible price in an overheated market. The funding injected into the business by the sale and leaseback gives the tenant RAMP Industries real scope for expansion of the business. In the meantime there are long-term prospects for trade counter use or sub-division of the building into smaller units should RAMP outgrow the premises. So this is a real win win deal.”
Edmunds Commercial acted on behalf of RAMP.
In a separate deal, Craigard has bought a 13,000 sq ft office building in Cirencester for £1.4million. The building is let to Corin Group Ltd until 2018 at a rent of £159110 pa. The initial yield is just under 9.5% and capital value per sq ft around £120 psf – less than new build cost.
Corin, manufacturers of replacement surgical joints, has its main production facility on nearby Love Lane Industrial Estate and it will probably consolidate all or part of its operations into that location in time.
Paul Foster, Managing Partner of Craigard commented: “The opportunity for Craigard is to work alongside our tenant over the next two-to-three years to gradually secure new occupiers for the building. The building is of a really good specification and was originally designed as three separate units so is well-suited to the local market. There is very little stock available in what is a lovely part of the world to live and work.”
Sanderson Weatherall in Bristol acted for the vendor. Nick Bevan Consulting in Cheltenham acted for Craigard.